Board moving ahead with Peoples Water pursuit

By Wes Helbling
Posted Feb 10, 2012 @ 08:30 AM
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The Bastrop Mayor and Board of Aldermen have taken another step toward efforts to take over a privately owned water company.

The agenda for Thursday’s regular meeting of city officials included an executive session “regarding pending legal negotiations and potential litigation involving Peoples Water Service,” with Monroe attorney Brian Crawford.

Emerging from the executive session, Bastrop Mayor Betty Alford-Olive requested the agenda be expanded to include a resolution giving approval to “legal counsel for the city to prepare and file the appropriate pleadings needed to advance” negotiations between the city and Peoples Water Service. The board vote was unanimous in favor of the resolution.

The city hired the Monroe law firm of Crawford & Ogg in April to represent the city in efforts to take over People’s local operations. In May, Peoples Water president Sherlock Gillet received a letter from Alford-Olive giving the company 14 days to finalize a purchase agreement with the city to the tune of $3.3 million, or the city would move forward with plans to take the company through expropriation. Peoples attorney James Ellis responded to the mayor’s letter stating the company would sue Alford-Olive and the board of aldermen if the city moved forward with expropriation plans.

Crawford told the Enterprise last year that efforts to take over the water company would continue regardless of legislation signed by Gov. Bobby Jindal in June removing the city’s ability to “quick take” utility companies.

Invoices obtained by the Bastrop-Morehouse Chamber of Commerce show the city accumulated $54,771 in related expenses from April through November -- $35,000 in legal fees charged by Crawford & Ogg and $19,325 to the CPA firm of Harold Asher, contracted by the city to provide an appraisal of Peoples’ local operations as required by state law regarding expropriation.

Peoples manager Randy Beaver said he was not aware of the item on Thursday’s agenda before the meeting. Gillet could not be reached for comment at press time Thursday.

Chamber director Dorothy Ford said the COC is “disappointed the city is moving forward on this. It’s obvious that Bastrop residents don’t want [the take over] based on the numerous signatures collected on petitions.”

Ford said the board has yet to provide requested information on how the city would ultimately make any profits, if it did assume ownership of the water company. The basis for disagreement, she said, is that the city’s objective in expropriation runs counter to the Chamber’s overall mission to promote local business development.

“What’s the message we are supposed to send out to prospective businesses—that they can come here and be successful, but could then be taken over?” she asked.

The Bastrop Mayor and Board of Aldermen have taken another step toward efforts to take over a privately owned water company.

The agenda for Thursday’s regular meeting of city officials included an executive session “regarding pending legal negotiations and potential litigation involving Peoples Water Service,” with Monroe attorney Brian Crawford.

Emerging from the executive session, Bastrop Mayor Betty Alford-Olive requested the agenda be expanded to include a resolution giving approval to “legal counsel for the city to prepare and file the appropriate pleadings needed to advance” negotiations between the city and Peoples Water Service. The board vote was unanimous in favor of the resolution.

The city hired the Monroe law firm of Crawford & Ogg in April to represent the city in efforts to take over People’s local operations. In May, Peoples Water president Sherlock Gillet received a letter from Alford-Olive giving the company 14 days to finalize a purchase agreement with the city to the tune of $3.3 million, or the city would move forward with plans to take the company through expropriation. Peoples attorney James Ellis responded to the mayor’s letter stating the company would sue Alford-Olive and the board of aldermen if the city moved forward with expropriation plans.

Crawford told the Enterprise last year that efforts to take over the water company would continue regardless of legislation signed by Gov. Bobby Jindal in June removing the city’s ability to “quick take” utility companies.

Invoices obtained by the Bastrop-Morehouse Chamber of Commerce show the city accumulated $54,771 in related expenses from April through November -- $35,000 in legal fees charged by Crawford & Ogg and $19,325 to the CPA firm of Harold Asher, contracted by the city to provide an appraisal of Peoples’ local operations as required by state law regarding expropriation.

Peoples manager Randy Beaver said he was not aware of the item on Thursday’s agenda before the meeting. Gillet could not be reached for comment at press time Thursday.

Chamber director Dorothy Ford said the COC is “disappointed the city is moving forward on this. It’s obvious that Bastrop residents don’t want [the take over] based on the numerous signatures collected on petitions.”

Ford said the board has yet to provide requested information on how the city would ultimately make any profits, if it did assume ownership of the water company. The basis for disagreement, she said, is that the city’s objective in expropriation runs counter to the Chamber’s overall mission to promote local business development.

“What’s the message we are supposed to send out to prospective businesses—that they can come here and be successful, but could then be taken over?” she asked.

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